Correlation Between Bellevue Healthcare and Hilton Worldwide
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare and Hilton Worldwide at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bellevue Healthcare and Hilton Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellevue Healthcare Trust and Hilton Worldwide Holdings, you can compare the effects of market volatilities on Bellevue Healthcare and Hilton Worldwide and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bellevue Healthcare with a short position of Hilton Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Hilton Worldwide.
Diversification Opportunities for Bellevue Healthcare and Hilton Worldwide
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bellevue and Hilton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust and Hilton Worldwide Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Worldwide Holdings and Bellevue Healthcare is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bellevue Healthcare Trust are associated (or correlated) with Hilton Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Worldwide Holdings has no effect on the direction of Bellevue Healthcare i.e., Bellevue Healthcare and Hilton Worldwide go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Hilton Worldwide
If you would invest 14,292 in Bellevue Healthcare Trust on September 2, 2024 and sell it today you would lose (172.00) from holding Bellevue Healthcare Trust or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Hilton Worldwide Holdings
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Hilton Worldwide Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Bellevue Healthcare and Hilton Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Hilton Worldwide
The main advantage of trading using opposite Bellevue Healthcare and Hilton Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare position performs unexpectedly, Hilton Worldwide can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hilton Worldwide will offset losses from the drop in Hilton Worldwide's long position.| Bellevue Healthcare vs. Virgin Wines UK | Bellevue Healthcare vs. Roebuck Food Group | Bellevue Healthcare vs. Leroy Seafood Group | Bellevue Healthcare vs. Flow Traders NV |
| Hilton Worldwide vs. Everyman Media Group | Hilton Worldwide vs. JD Sports Fashion | Hilton Worldwide vs. Deltex Medical Group | Hilton Worldwide vs. Jacquet Metal Service |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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